Many sellers are wondering whether they should issue FBA. Next, we will reveal the answer.
1. Advantages and Disadvantages of FBA
For FBA sellers, the biggest advantage is the support of traffic and exposure. Of course, the advantages of FBA don’t stop at this. For example, having very excellent customer service is something that self-shipping sellers cannot do. For another example, as an FBA seller, if a customer gives negative feedback about logistics, the seller is not responsible at all. Even if negative feedback is not given due to logistics reasons, the probability of deleting negative feedback is much higher than that of self-shipping sellers.
The most critical point is that Amazon’s paying members currently account for 60% of Amazon’s customers. With so many paying members, they will naturally give priority to products with the Prime mark, so FBA’s conversion of product sales The rate increase is also very helpful.
So, the advantages of FBA are as follows: traffic support, excellent customer service, high probability of deleting negative feedback, and high conversion rate. For sellers, these are relatively important aspects. So, what are the disadvantages of FBA?
Everything has disadvantages, and so does FBA. For sellers using FBA, the most frustrating thing is returning or exchanging goods. Data shows that FBA’s return and exchange rate is as high as 30%. Amazon is also the platform with the highest return and exchange rate in the United States, so the biggest disadvantage of being an FBA seller is that FBA customer service is very good. As long as the customer raises the slightest objection, the customer service will guide the buyer to return or exchange the product. This phenomenon is very common, and sometimes the product is even given to the customer directly to “generate others”.
The most disappointing thing for many sellers about FBA is the return and exchange of goods. However, another disadvantage of FBA is that the sorting fees and warehousing fees charged are relatively high. In terms of product fees, Gubi will even exceed the commission charged by Amazon, which is very scary.
So, the disadvantages of FBA are as follows: First, the high return and exchange rate: Second, generous customer service: Third, high usage fees. Every point here is actually a key point related to our profits. Therefore, we have to carefully consider whether to use FBA to ship goods.
2. Advantages and Disadvantages of FBM
For sellers who ship goods by themselves, the biggest advantage is that they do not need to store goods, have less financial pressure, and do not need to stock up on goods. And put yourself under a lot of financial pressure. At the same time, customer service is in your own hands, and you can reduce part of the return and exchange costs through high-quality customer service.
So, the advantages of self-delivery are: low financial pressure and can effectively reduce the cost of returns and exchanges.
The pace of self-delivery is: because it is not shipped through Amazon , so Amazon will not support it in terms of weight, and the corresponding exposure and traffic will decrease. At the same time, Amazon customer service does not solve the customer service problems of self-shipping sellers.
In addition, since most of the readers of this book are Chinese sellers, the products are shipped from China, and the transportation cycle is very long, which will also affect the customer’s conversion rate. The most critical point is that the probability of self-shipping sellers deleting negative feedback is very low, which will have a certain negative impact on the health of the account.
So, the disadvantages of self-delivery are as follows: first, it affects exposure; second, there is no professional customer service; third, the conversion rate is low; fourth, the probability of deleting negative feedback is low.
3. How to choose between the two
After reading the above analysis of advantages and disadvantages, the seller should have an idea. If you want to make a difference on Amazon, you should choose FBA. Although we may lose some profits due to the high return rate and logistics costs, after stabilization in the later period, these profits can be made up by optimizing products and optimizing logistics.
After all, higher exposure and order volume are our goals. We can also search for this product by ourselves. The top-ranked products are almost all FBA products with the Prime mark, and there is no display space for self-shipped products.
If you just want to try your hand at Amazon. Then use FBM to ship by yourself. After all, the investment required to do FBA will make your testing costs too high, and the gain outweighs the loss.